Logistics Abbreviations

From the English logistics, logistics is the set of means and methods that allow carrying out the organization of a company or a service. Business logistics implies a certain order in the processes that involve the production and marketing of goods.

It is therefore said that logistics is the bridge or link between production and the market. Physical distance and time separate the production activity from the point of sale: logistics is responsible for linking production and the market through its techniques.

In companies, logistics involves planning and resource management tasks. Its function is to efficiently implement and control materials and products, from the point of origin to consumption, with the intention of satisfying consumer needs at the lowest possible cost .

The origin of logistics lies in the military sphere, where the organization tended to ensure the movement and maintenance of troops in the field. In times of war, efficiency in storing and transporting the elements is vital. Otherwise , soldiers may suffer from a shortage of means and resources to face the harshness of combat.

Based on these experiences, business logistics took on the task of studying how to place goods and services in the right place, at the right time and under the right conditions. This allows companies to meet the requirements and needs of their customers and obtain the highest possible profitability.

Logistics comprises the operations that must be performed to process goods from raw material to end product and to deliver them to the customer . This method should be carried out as efficiently as possible.

The logistics process occupies an important place in the economy . Because the costs of labor and raw materials are linked to a minimum, logistics is one of the few areas where companies can still compete with each other. After all, by moving goods as quickly as possible and in the right way, costs are saved. Among other things, it is important that the raw materials are delivered and processed at the right time, so that storage costs are kept to a minimum. To prevent shops from running out of stock, the goods must arrive on time: empty shelves do not generate income.

List of Acronyms Related to Logistics